Post Session: Quick Review

Local equity markets in sync with global peers surged to ‘Santa Clause rally’, caused by Fed's statement that it was in no rush to start hiking rates that spurred risk appetite across the globe, allaying fears of immediate outflows of foreign funds from emerging markets assets. Sentiment was also bolstered at home front after Finance Minister, in its Mid-Year Review Report, pointed that India could well sign-off FY15 with growth of 5.5%. Markets unlike usual trend spurted on last trading session of the week, notably ahead of F&O expiry week. Participants continued to pour their funds into equities even as Finance ministry highlighted the country faced a 'major challenge' in achieving its 2014/15 fiscal deficit aim of 4.1% of gross domestic product, its lowest in seven years. It also poured cold water on growing expectation of RBI slashing interest rates at the start of year as it noted that the rates were likely to remain unchanged till the end of the March quarter.

In the extremely jubilant session of trade, markets kept gaining from strength to strength throughout the session, but surrendered some of their gains by close of trade on bout of profit-booking. Though off highs, both Sensex and Nifty concluded above psychologically crucial 27,350 and 8,200 levels respectively, with gains of around 3/4th of a percent. Meanwhile, broader indices also participating into the rally went home with gains of around 0.30%-0.60%.

On the global front, markets in Asia rose in the wake of US markets' overnight records - inspired by Wednesday's apparent hardening of the US's stance on interest rates. Meanwhile, European shares were higher in morning trade on Friday, following the stellar rally in Asian and U.S. equities overnight.

Closer home, most of the sectoral indices on BSE concluded into positive territory, with only exceptions turning out to be stocks from FMCG, Auto and Consumer Durable counters. On the flip side, massive buying was witnessed in stocks belonging from Information Technology (IT), Metal and Oil & Gas counters. Tech giant Accenture's higher revenue guidance, which sent Infosys, Wipro, Tech Mahindra and HCL Tech shares higher, mainly lifted the entire pivotal higher. Metal stocks shone in trade today after China revised up the size of its economy in 2013 amid expectations that Beijing may roll out more stimulus to support the slowing economy. Gross domestic product was up 3.4% to an estimated 58.8 trillion yuan ($9.5 trillion) in 2013, the National Bureau of Statistics data showed on Friday.

The market breadth on the BSE remained in the favour of advances, where advancing and declining stocks were in a ratio of 1456:1414, while 118 scrips remained unchanged. (Provisional)

The BSE Sensex ended at 27355.31, up by 228.74 points or 0.84% after trading in a range of 27292.14 and 27497.12. There were 21 stocks advancing against 9 stocks declining on the index. (Provisional)

The broader indices ended in the in green; the BSE Mid cap index was up by 0.27%, while Small cap index up by 0.44%. (Provisional)

The gaining sectoral indices on the BSE were IT up by 1.99%, Metal up by 1.78%, Oil & Gas up by 1.44%, TECK up by 1.44% and Capital Goods up by 1.36% while, FMCG down by 1.24%, Realty down by 0.53%, Consumer Durables down by 0.15% and Auto down by 0.12% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindalco up by 3.09%, ICICI Bank up by 3.04%, Tata Power up by 2.88%, Wipro up by 2.80% and Sesa Sterlite up by 2.55%. On the flip side, ITC down by 1.87%, Hindustan Unilever down by 1.83%, Bajaj Auto down by 1.59%, Bharti Airtel down by 1.29% and Cipla down by 1.17% were the top losers. (Provisional)

Meanwhile, with an aim to revive stalled investments in the economy, Prime Minister Narendra Modi has decided to shift the Project Monitoring Group (PMG) from the cabinet secretariat to the Prime Minister's Office. Narendra Modi has taken the decision with a view to lend more weight to the government's efforts of reviving the investment cycle. The PMO will now directly oversee all the project clearances, which will impart a greater degree of efficiency and also ensure that clearances are fast tracked at every level. Further, the move could help firms planning for coal, power, steel and infrastructure projects to cut through a maze of up to 180 clearances.

The PMG was set up in July 2013 by the previous Prime Minister Manmohan Singh Govt to help facilitate outstanding clearances that were holding up large investments across sectors. Till now, the group has estimated to resolve various hurdles blocking investments of Rs 7 lakh crore out of nearly 500 projects worth Rs 25 lakh crore.

During the recent weeks, Prime Minister has been facing criticism over its slow decision process to spur investment and re-energise the economy. Indian Industrial output hit a three-year low at -4.2% in October, led by a de-growth in manufacturing sector. Though, industry is upbeat about the new government installed this May. The cumulative growth for the period April-October 2014-15 over the corresponding period of the previous year stood at 1.9%.

India VIX, a gauge for markets short term expectation of volatility dipped 0.59% at 14.51 from its previous close of 14.60 on Thursday. (Provisional)

The CNX Nifty ended at 8225.20, up by 65.90 points or 0.81% after trading in a range of 8208.60 and 8263.45. There were 34 stocks advancing against 16 stocks declining on the index. (Provisional)

The top gainers on Nifty were Power Grid up by 3.19%, Hindalco up by 3.17%, ICICI Bank up by 2.96%, Tata Power up by 2.46% and Wipro up by 2.34%. On the flip side, DLF down by 2.87%, ITC down by 1.61%, Asian Paints down by 1.60%, Bharti Airtel down by 1.46% and Hindustan Unilever down by 1.41% were the top losers. (Provisional)

European Markets were trading in the green; UK’s FTSE 100 was up by 0.65%, Germany’s DAX was up by 0.50% and France’s CAC was up by 0.38%. 

The Asian equity benchmarks ended in green on Friday, amid a global rally with Japan’s index jumping on a weaker yen and Chinese shares surged to a four-year high. Japanese government bond prices held mostly firm with two-year yield hitting a record low and yields up to four years staying below zero on expectations of a bond shortage next week, ahead of a large redemption. The Bank of Japan voted to hold monetary policy stable in an 8 to 1 board vote, maintaining a pace to buy 80 trillion yen of government bonds annually. Bank of Japan struck a slightly more upbeat view of the world’s number three economy, saying exports were showing signs of picking up while factory output has started to bottom out. The rate review was the first since Abe’s landslide victory in a December 14 election that gave him a fresh mandate to continue efforts to pull Japan out of 15 years of grinding deflation.

China has revised up the estimated size of its economy for 2013 by 3.4% to 58.8 trillion yuan ($9.5 trillion), the National Bureau of Statistics stated but the revision will not affect economic growth this year. That marks an increase of 1.9 trillion yuan, or $305 billion, in the size of the Chinese economy that year, slightly below the entire gross domestic product of Malaysia during the same period.